Origination-Based Routing (OBR)

A Solution to Sky-High Wholesale Rates for Worldwide / US-Originated VoIP Traffic in Europe / UK

The VoIP industry is undergoing a seismic shift, particularly in Europe, where skyrocketing wholesale rates for global and US-originated traffic have left service providers scrambling for solutions. The root cause? Dialer traffic inundating European and UK networks, leading to congestion, inefficiencies, and increased costs. In response, Origination-Based Routing (OBR) has emerged as a game-changing strategy to address these challenges. This article explores the reasons behind the rate hikes, the purpose of OBR, how customers can adapt, and alternative solutions like VirtualGlobalPhone

Understanding Origination-Based Routing (OBR) in VoIP

The Concept

Origination-Based Routing (OBR) is a pricing and routing strategy where the cost of a call depends on its origination point. For example:

· Calls originating from the worldwide or US to Europe are charged at a premium rate.

· Calls originating within Europe are charged at standard or lower rates.

The Purpose of OBR

1. Cost Management: By charging higher rates for problematic traffic (e.g., US-originated dialer calls), carriers can recover costs and maintain profitability.

2. Traffic Control: OBR discourages low-quality traffic, reducing network congestion.

3. Fair Pricing: Legitimate users benefit from lower rates for local or intra-European calls.

The Reason Behind the Surge in VoIP Rates

Dialer traffic — generated by automated calling systems — has flooded European networks, overwhelming infrastructure and driving up costs. This surge is primarily due to:

1. Robocalls and Spam: Unwanted automated calls, often originating from the US and other worldwide destinations, have clogged networks.

2. Fraudulent Traffic: Scammers exploit VoIP systems to make high volumes of cheap or free calls.

3. Network Congestion: The sheer volume of dialer traffic has strained European carriers, forcing them to increase rates to manage the load.

The European Response

To combat these issues, European carriers have implemented sky-high wholesale rates for US-originated or any other worldwide traffic. This move aims to:

· Deter Abuse: Higher costs discourage fraudulent and spam callers.

· Recover Costs: Carriers seek to offset the expenses of managing congested networks.

· Improve Quality: By reducing low-quality traffic, carriers can enhance service for legitimate users.

How VoIP Customers Can Understand and Adjust Usage

As a VoIP user, whether you’re an enterprise, call center, or individual, it’s essential to understand the impact of OBR on your VoIP bills. Here are some steps to mitigate the cost increase:

1. Monitor Call Origination Data

o Identify whether your calls are originating from a US VoIP number or any worldwide number and terminating in Europe.

o Analyze your call patterns to assess how much traffic is affected by OBR pricing.

2. Use Local VoIP Numbers in Europe

o Instead of making calls directly from the US or worldwide, businesses can subscribe to virtual phone numbers from European countries and route their calls locally.

o Services like VirtualGlobalPhone.com provide local European DID numbers that reduce exposure to OBR pricing.

3. Optimize Call Routing Strategies

o Work with VoIP providers to identify alternate carriers or routes that do not enforce OBR pricing aggressively.

o Utilize Least Cost Routing (LCR) to find the most cost-effective pathways for international calls.

4. Leverage VoIP-to-VoIP Calls

o Use services that allow VoIP-to-VoIP calling without involving traditional telecom networks, thereby avoiding OBR pricing altogether.

o Consider platforms like SIP-based communication for internal and external calls.

Alternative Solutions:

VirtualGlobalPhone offers a cost-effective and flexible solution for businesses navigating the challenges of OBR and high wholesale rates. Key features include:

1. Virtual Numbers: Obtain local numbers in over 60+ countries, reducing reliance on US-originated traffic.

2. Global Infrastructure: Strategically located data centers ensure low latency and high call quality.

3. Scalable Pricing: Pay-as-you-go plans with no hidden fees.

4. Fraud Prevention: Advanced tools to detect and block spam or fraudulent calls.

Why Choose VirtualGlobalPhone?

· Cost Savings: Avoid premium rates for worldwide or US-originated traffic by using local numbers.

· Reliability: Redundant infrastructure ensures 99.9% uptime.

· Ease of Use: User-friendly platform with 24/7 support.

The Future of VoIP: Adapting to OBR and Beyond

The introduction of OBR and rising wholesale and retail rates signal a broader trend in the VoIP industry: a shift toward fairer, more sustainable pricing models. While these changes may pose challenges, they also present opportunities for innovation and growth. By leveraging solutions like VirtualGlobalPhone, businesses can navigate this new landscape while maintaining cost efficiency and service quality.

Key Takeaways

1. OBR is Here to Stay: Origination-Based Routing is a response to the challenges posed by dialer traffic and network congestion.

2. Adapt or Fall Behind: Businesses must optimize call routing, monitor traffic, and educate users to stay competitive.

3. Explore Alternatives: Solutions like VirtualGlobalPhone and OmniFlow.biz offer cost-effective, scalable, and reliable options for managing VoIP traffic.

By understanding the reasons behind OBR, adapting to new pricing models, and exploring alternative solutions, businesses can thrive in the evolving VoIP landscape. Whether you’re a service provider or an end-user, now is the time to embrace change and innovate for the future.